Home >News >India >CIOs to tweak IT strategies for post covid-19 world: Report
IT has become the most prominent internal function in the aftermath of covid-19,
IT has become the most prominent internal function in the aftermath of covid-19,

CIOs to tweak IT strategies for post covid-19 world: Report

  • Firms will move away from investing in internal data centres to engaging cloud service providers
  • In most cases, IT spend in FY21 will comprise basic minimum outlay required to keep businesses running

BENGALURU: Chief information officers (CIOs) have been tweaking information technology (IT) strategies as many business models will not be relevant in a post pandemic world, according to a Deloitte report.

IT has become the most prominent internal function in the aftermath of covid-19, with business and other functions expecting IT services and support more than ever before.

The Deloitte study, which interviewed CIOs from eight different sectors, said the use of cloud infrastructure will increase in the long term. In a typical organisation, cloud adoption currently stands at 20-30%, while some startups have managed to be 100% on the cloud.

"CIOs must understand the right mix of cloud availability for their organisations to decrease demand on in-house infrastructure, and ensure increased service availability and reliability," the report said.

Organisations will consider moving away from investing in internal data centres to engaging managed and cloud service providers.

According to the report, third-party or cloud data centres did not show any sign of disruption during the lockdown although some organisations managing their own data centres were required to move key servers to ensure business continuity.

CIOs will also need to consider new ways of working, enabling technology to replace manual processes and availability of online and web solutions. IT business continuity planning (BCP) and disaster recovery (DR) setups need to be relooked at.

"Archaic BCP and DR procedures, which were hardly tested, have now been put through a real stress scenario. Hence, these should be adequately revamped," the report stated.

A long-term cyber security-related priority for CIOs will be to ensure that systems are secure and well-monitored. "Using shared security of operations provided by cyber security vendors to ensure the availability of basic security features" is one of the methods that can be used by companies.

Finally, IT budgets will be significantly cut given the cash crunch in organisations after the covid-19 crisis. About 90% of the respondents said they expect IT budgets to be slashed even though some of them had approved IT budgets for FY21.

In most cases, IT spending in FY21 will be restricted to basic minimum outlay required to keep businesses running with only essential upgrades. The cost model will move towards operating expenditure from capital expenditure with organisations exploring cloud and third-party data centres.

Organisations may also resort to decreasing non-essential IT staff, contractors, and vendors, wherever possible.

"In our view, the IT budget remains an essential spend. Organisations should invest in newer technologies as tech-savvy organisations were able to make most of the limited resources available in the current situation, while still being able to service end-customers and business users," the report stated.

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